Amazon.com (NASDAQ: AMZN) and Netshoes Cayman (NYSE:NETS) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Profitability

This table compares Amazon.com and Netshoes Cayman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amazon.com 1.20% 8.67% 2.10%
Netshoes Cayman N/A N/A N/A

Valuation and Earnings

This table compares Amazon.com and Netshoes Cayman’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amazon.com $135.99 billion 4.16 $2.37 billion $3.96 296.53
Netshoes Cayman $533.75 million 0.41 -$46.35 million N/A N/A

Amazon.com has higher revenue and earnings than Netshoes Cayman.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Amazon.com and Netshoes Cayman, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amazon.com 0 2 48 0 2.96
Netshoes Cayman 0 1 3 0 2.75

Amazon.com presently has a consensus price target of $1,219.21, suggesting a potential upside of 3.83%. Netshoes Cayman has a consensus price target of $21.88, suggesting a potential upside of 207.23%. Given Netshoes Cayman’s higher possible upside, analysts clearly believe Netshoes Cayman is more favorable than Amazon.com.

Institutional and Insider Ownership

59.9% of Amazon.com shares are owned by institutional investors. Comparatively, 61.5% of Netshoes Cayman shares are owned by institutional investors. 17.7% of Amazon.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Amazon.com beats Netshoes Cayman on 9 of the 11 factors compared between the two stocks.

Amazon.com Company Profile

Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices. The Company, through its subsidiary, Whole Foods Market, Inc., offers healthy and organic food and staples across its stores. The Company also offers a range of products like whole trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic gala and fuji apples, organic rotisserie chicken.

Netshoes Cayman Company Profile

Netshoes (Cayman) Limited is a sports and lifestyle online retailer in Latin America. The Company focuses on offering an online consumer platform in Latin America. The Company operates through two segments: Brazil and International. The Company operates in Brazil, Argentina, and Mexico. The Brazil segment consists of retail sales of consumer products from all of its verticals (which includes sales of sporting goods and related garments, as well as fashion and beauty goods) carried out through its sites Netshoes.com.br and Zattini.com.br and third-party sites that it manages, as well as its business to business offline operation. The International segment consists of retail sales of consumer products (mainly sporting goods and related garments) from its sites Netshoes.com.ar and Netshoes.com.mx in Argentina and Mexico.

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